Precious metals extended its slide for the 2nd consecutive week and cracked below Rs 30,000-mark to close at Rs 29,835 per 10 grams at the bullion market during the week amid weakening global trend and considerable fall in demand from local jewellers.
Traders said sentiment was downbeat as gold prices slipped to their lowest in a year in global markets, as the dollar firmed after Federal Reserve Chairman Jerome Powell's US economic outlook reinforced views that the central bank is on track to steadily hike interest rates, eroding appeal of the precious metal.
The yellow-metal shed a whopping 2.29 percent in its two week downslide, or Rs 695 per 10 grams. Silver slipped below the Rs 38,000-mark due to reduced offtake by industrial units and coin makers.
The white-metal plunged 3.57 percent in its second weekly fall, or Rs 1,390 per kg.
In worldwide trade, Gold prices settled higher yesterday, chipping away some of their weekly loss, as comments from President Donald Trump on US interest rates and the dollar, weighed heavily on greenback.
Trump voiced his displeasure with Federal Reserve interest-rate increases in a Thursday interview, prompting a decline in the benchmark dollar index, which gained momentum after he tweeted on Friday, accusing China and the European Union of manipulating their currencies and interest rates
August gold rose $7.10, or 0.6 percent, to settle at $1,231.10 an ounce. The contract settled at $1,224 Thursday the lowest finish for a most-active contract since July 2017. Thursdays settlement also marked bullions entry into correction territory down more than 10 percent from its peak on Jan 15 at $1,362.90. The futures contract saw roughly 0.8 percent decline this week.
In other trading, September silver gained 14.7 cents, or nearly 1 percent, to $15.549 an ounce. The contract fell over 1 percent Thursday to settle at $15.402 an ounce its lowest close since late 2016. It saw a 1.7 percent weekly loss.